Despite a growing economy, millions of American continue to experience ongoing anxiety about their current and future economic well-being. Yet a new study indicates there is one group of workers who are feeling more financially secure and optimistic about their future than average workers: employees who work in private, employee-owned businesses.
In a new poll from John Zogby Strategies, employee-owners across the country were more financially secure and less anxious than the overall workforce, feeling better equipped to deal with upcoming and unexpected expenses.
Of course, these findings are no surprise to those of us who work at employee-owned companies; we recognize the great benefits of the employee ownership model, which boosts workers’ share of capital through specialized retirement accounts. Under an employee stock ownership plan (ESOP), more than 13.5 million Americans share in that type of productive, collaborative work culture, while enjoying better job and retirement security. At Entertainment Partners, we have been 100 percent employee-owned since 2004. Since that time, our core competency of offering backend services in the entertainment industry has grown across the country, benefitting both our overall business and employees. More broadly, expanding this unique work structure would ensure more opportunity and stability for employees like ours across the country.
With ESOPs, what’s good for business is equally great for employee-owners. According to the Zogby survey, commissioned by the Employee-Owned S Corporations of America, employee-owners more often feel they have opportunities for financial advancement, and that comports with their own reality and that of their companies. A study of company performance over the past decade found that among Subchapter S ESOPs, jobs grew an impressive 39 percent. This growth has meant stable careers and earnings for S ESOP employees. In addition to higher productivity, employee-owners are able to boost their wealth as their companies grow, giving them financial peace of mind.